Diageo-Heineken vs. SABMiller in South Africa

The Wall Street Journal and other news outlets are reporting today that Heineken NV, in conjunction with global spirits company Diageo PLC, has opened a new brewery in South Africa as part of a campaign to challenge SABMiller, the company’s dominant brewer.

The state-of-the-art Sedibeng brewery, south of Johannesburg, will produce Heineken’s namesake brand, Amstel Light, Strongbow cider, Diageo’s Guinness and some other labels.

As part of a coordinated marketing campaign, Heineken is sponsoring a local reality TV show, “Class Act,” which will feature heavy product placement of Amstel Light.